Land Survey

To Survey or Not To Survey: That is the question. The answer in our opinion is yes. We are often asked, “Is a survey really necessary? The house has been there for years, it’s in an established neighborhood, and it is an additional expense.” None are satisfactory reasons.

We routinely review surveys from established properties that have significant survey issues. In the past year alone, we have “discovered” 7 swimming pools built into easements, a $650,000 home with an encroaching chimney, a house built 2 feet over the property line, and another where the neighbor built a 319 square foot room addition onto the property. There also were numerous fence concerns where boundary fences were well over property lines, or the garage was on the neighbor’s property. In each case the current owner was “not aware” of the problems.

The matter has been further muddied because your loan officer or mortgage company may have advised you that you do not need to obtain a survey in order to get a mortgage on your “new” home.  What they often don’t tell you is that only they are protected from survey issues  National title insurance underwriters provide them with survey coverage.  That coverage does not protect you.  If there is a survey issue after closing, the lender’s loan is protected; you are not.

QUESTION:   How about if I purchase a homeowner’s title insurance policy when I close on my new house? 

ANSWER:  If a survey is not obtained, only the lender is fully protected. You are only insured against forced removal of the structure, excluding fences and boundary walls. Any matter that would have been disclosed by a survey is not covered/ insured. You must obtain a survey to be fully protected against survey matters existing at closing; you will also be protected against future encroachments.

To review some of these survey issues, click here.

Realtors® remember: if you recommend to your buyers that they do not obtain a survey, and there is a “problem”, you may potentially be liable.